According to WJS.com, "new-home construction rose 3% to a seasonally adjusted annual rate of 1.229 million units last month from September -- the first monthly gain since June -- but the increase was driven entirely by construction of multifamily buildings with five or more units. Construction in that volatile sector soared 47% after falling 36% in September."
Is it a sign that house market is coming back or are there other factors affecting the temporary rise of housing? When we are looking at the data from 2006, it is 16.4% below the revised October rate of 2006.So the rise was in the more volatile month-to-month, and within the margin of error. Deline continues, particularly for single family homes.
The economist Haseeb Ahmed from J.P. Morgan said "new construction of single-family homes is down 52% from its January 2006 peak. Mr. Ahmed sees no sign the slump has hit bottom."
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